Activity-Based Cost Accounting (ABC)
Published on: Jan, 13, 2011
A cost accounting system that accumulates costs based on activities performed and then uses cost drivers to allocate these costs to products or other bases, such as customers, markets, or projects. It is an attempt to allocate overhead costs on a more realistic basis than direct labor or machine hours.
Source: http://www.apics.org/ (10th ed.)
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